04 Mar 2010

BVCA responds to "A Guide on Climate Change"


Responding to the publication of 'A Guide on Climate Change for Private Equity Investors ', Simon Walker, chief executive of the British Private Equity & Venture Capital Association, said:

"The BVCA welcomes the publication of 'A Guide on Climate Change for Private Equity Investors'. The growing problem of climate change is one private equity must address. As governments across the world step up their efforts to combat growing environmental challenges, it is essential that private equity investors are equipped with the right tools to adequately assess the impact new policy initiatives, and the wider economic effects of climate change, could have on their investments." The guide is not intended as a set of rules but rather a way to inform and spur action in this important and emerging area. Framed as a series of questions it aims to help both pension fund trustees that invest in private equity, and private equity fund managers themselves, better understand and manage the risks and opportunities associated with climate change.

It has been produced by the Institutional Investors Group on Climate Change (IIGCC), a group committed to raising awareness of this issue amongst companies, policymakers and investors. A number of BVCA members were involved in the drafting.

Tom Murley, head of the renewable energy team at HgCapital and chairman of the BVCA's sustainable energy, environment and technologies board, said: "Climate change presents risks and opportunities across all businesses globally, including private equity. Institutional investors are increasingly concerned about climate risks across their portfolios, including private equity investment. The IIGCC is at the forefront of increasing institutional investor awareness of the risks and opportunities of climate change. This guide should increase LP, GP and portfolio company awareness climate change issues that will increasingly affect investment decisions and outcomes. Private equity has a role in responding to the climate challenge, and this is an important step in shaping what that role should be." The IIGCC is at the forefront of increasing institutional investor awareness of the risks and opportunities of climate change, and this guide is an important step in increasing investor and company awareness of the issues involved in climate change that increasingly affect investment decisions and outcomes. Private equity has a role in responding to the climate challenge, and this is an important step in shaping what that role should be."

Wol Kolade, managing partner of ISIS Equity Partners and chairman of the BVCA's Responsible Investment Advisory Board, said:

"The IIGC guide is a significant contribution to the wider Responsible Investment Agenda. It can play a useful role in helping GPs and LPs to better understand how the challenges associated with climate change can impact their investments. We look forward to contributing to the ongoing dialogue with the IIGC on this important issue."

Peter Dunscombe, Chairman of IIGCC said:

"Climate change has an impact on all types of asset classes. But while publicly listed companies have long been required to disclose information relating to the potential impact of climate change on their business, the private equity community has not been obliged to research or communicate comparable information. With legislation such as the CRC Energy Efficiency Scheme coming into effect in effect in April however, this guide is a signal to the sector that now is the time to step up its attitude to climate change."



Notes to editor
  1. The report can be viewed here: A Guide on Climate Change for Private Equity Investors

  2. The Institutional Investors Group on Climate Change (IIGCC) is a forum for collaboration on climate change for European investors. The group's objective is to accelerate investment in a low-carbon economy by bringing investors together to use their collective influence with companies, policymakers and investors. The group currently has over 50 members, representing assets of around €4trillion.

  3. The British Private Equity and Venture Capital Association (BVCA) is the industry body for the UK private equity and venture capital industry. The BVCA has approximately 520 member firms, representing the overwhelming number of UK-based private equity and venture capital firms and their advisers.

  4. The Responsible Investment Board assists the BVCA in being able to provide practical advice to its members to help them incorporate responsible investment considerations into their business decisions. The Board comprises investors, intermediaries and sustainability/responsible investment practitioners recognised for their excellence, experience, insight and ability to provide strategic guidance to the BVCA.

  5. The Energy, Environment and Technology Board is a consortium of leaders from venture capital and private equity firms who invest across the spectrum of clean technologies, infrastructure and renewable energy projects and are dedicated to the stimulus for clean and sustainable energy jobs and economic development. The EET Board works to ensure the BVCA's engagement with Government and all other stakeholders accurately represents this segment.


Related topics

×

Update your login details

We updated our website and supporting systems on 12th December. 

If you previously had an account, please reset your password. If it's your first-time logging in, please register to create an account. For assistance, please contact the BVCA Membership Team

Login